Is Afya Stock a Good Investment?

Afya Investment Advice

AFYA

To provide specific investment advice or recommendations on Afya stock, we recommend investors consider the following general factors when evaluating Afya. This will help you to make an informed decision on whether to include Afya in one of your diversified portfolios:

Examine Afya's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Afya's leadership team and their track record. Good management can help Afya navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Diversified Consumer Services space and any emerging trends that could impact Afya's business and its evolving consumer preferences.
Compare Afya's performance and market position to its competitors. Analyze how Afya is positioned in terms of product offerings, innovation, and market share.
Check if Afya pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Afya's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Afya stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Afya is a good investment.

Sell

Buy

Hold

Our trade advice tool can cross-verify current analyst consensus on Afya and to analyze the company potential to grow in the current economic cycle. To make sure Afya is not overpriced, please confirm all Afya fundamentals, including its total debt, earnings per share, and the relationship between the net income and book value per share . Given that Afya has a number of shares shorted of 986 K, we suggest you to validate Afya market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Market Performance	Weak	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Undervalued	Details
Odds Of Distress	Low	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Impartial	Details
Analyst Consensus	Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Afya Stock

Researching Afya's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 84.0% of the company shares are held by company insiders. The book value of Afya was presently reported as 40.04. The company had not issued any dividends in recent years.

To determine if Afya is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Afya's research are outlined below:

	About 84.0% of the company shares are held by company insiders
	Latest headline from gurufocus.com: Afya Ltd Shares Up 4 percent on Nov 22

Afya uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Afya. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Afya's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	27th of March 2024 Upcoming Quarterly Report	View
	22nd of May 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	27th of March 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Afya's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Afya's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2020-12-03	2020-09-30	1.19	1.07	-0.12	10
2020-12-31	2020-12-31	0.31	0.18	-0.13	41
2022-08-22	2022-06-30	0.98	1.12	0.14	14
2022-03-31	2021-12-31	0.86	1.05	0.19	22
2019-12-02	2019-09-30	0.59	0.78	0.19	32
2020-08-27	2020-06-30	0.67	0.89	0.22	32
2023-05-24	2023-03-31	2.03	1.8	-0.23	11
2024-03-14	2023-12-31	1.55	1.79	0.24	15

Know Afya's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Afya is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Afya backward and forwards among themselves. Afya's institutional investor refers to the entity that pools money to purchase Afya's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Two Sigma Investments Llc	2024-09-30	86.7 K
Cubist Systematic Strategies, Llc	2024-09-30	85.2 K
Verition Fund Managegment, Llc	2024-06-30	81.5 K
Jane Street Group Llc	2024-06-30	78.2 K
Bank Of America Corp	2024-06-30	70.7 K
Envestnet Asset Management Inc	2024-09-30	70.1 K
D. E. Shaw & Co Lp	2024-09-30	62.3 K
Ubs O'connor Llc	2024-09-30	60.9 K
Campbell & Co Investment Adviser Llc	2024-09-30	55.7 K
Fmr Inc	2024-09-30	2.6 M
Bamco Inc	2024-09-30	2.5 M

Note, although Afya's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Afya's market capitalization trends

The company currently falls under 'Mid-Cap' category with a current market capitalization of 1.51 B.

Market Cap

6.96 Billion

Afya's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.14	0.22
Return On Capital Employed	0.12	0.11
Return On Assets	0.05	0.05
Return On Equity	0.11	0.10

The company has Profit Margin (PM) of 0.18 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.28 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.28.

Determining Afya's profitability involves analyzing its financial statements and using various financial metrics to determine if Afya is a good buy. For example, gross profit margin measures Afya's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Afya's profitability and make more informed investment decisions.

Please note, the presentation of Afya's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Afya's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Afya's management manipulating its earnings.

Evaluate Afya's management efficiency

Afya has return on total asset (ROA) of 0.0711 % which means that it generated a profit of $0.0711 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1528 %, meaning that it created $0.1528 on every $100 dollars invested by stockholders. Afya's management efficiency ratios could be used to measure how well Afya manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.22, whereas Return On Capital Employed is forecasted to decline to 0.11. At present, Afya's Other Assets are projected to increase significantly based on the last few years of reporting. The current year's Return On Tangible Assets is expected to grow to 0.22, whereas Total Assets are forecasted to decline to about 4.7 B.

	Last Reported	Projected for Next Year
Book Value Per Share	40.27	42.28
Tangible Book Value Per Share	(12.74)	(12.11)
Enterprise Value Over EBITDA	10.63	10.10
Price Book Value Ratio	2.67	2.54
Enterprise Value Multiple	10.63	10.10
Price Fair Value	2.67	2.54
Enterprise Value	11.8 B	7.5 B

The strategic vision of Afya management plays a critical role in its financial performance. By evaluating this vision, we provide insights into the stock's growth potential.

Beta

0.917

Basic technical analysis of Afya Stock

As of the 28th of November, Afya shows the Standard Deviation of 2.0, mean deviation of 1.54, and Risk Adjusted Performance of (0.03). Afya technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.

Afya's Outstanding Corporate Bonds

Afya issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Afya uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Afya bonds can be classified according to their maturity, which is the date when Afya has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

MPLX LP 52 Corp Bond

US55336VAL45

View

View All Afya Corporate Bonds

Understand Afya's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Afya's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	(0.03)
	Market Risk Adjusted Performance	(0.19)
	Mean Deviation	1.54
	Coefficient Of Variation	(2,111)
	Standard Deviation	2.0
	Variance	4.02
	Information Ratio	(0.11)
	Jensen Alpha	(0.17)
	Total Risk Alpha	(0.41)
	Treynor Ratio	(0.20)
	Maximum Drawdown	9.86
	Value At Risk	(4.21)
	Potential Upside	2.62
	Skewness	(0.90)
	Kurtosis	1.3

	Risk Adjusted Performance	(0.03)
	Market Risk Adjusted Performance	(0.19)
	Mean Deviation	1.54
	Coefficient Of Variation	(2,111)
	Standard Deviation	2.0
	Variance	4.02
	Information Ratio	(0.11)
	Jensen Alpha	(0.17)
	Total Risk Alpha	(0.41)
	Treynor Ratio	(0.20)
	Maximum Drawdown	9.86
	Value At Risk	(4.21)
	Potential Upside	2.62
	Skewness	(0.90)
	Kurtosis	1.3

Consider Afya's intraday indicators

Afya intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Afya stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	0.0397
	Daily Balance Of Power	(0.46)
	Rate Of Daily Change	0.98
	Day Median Price	17.05
	Day Typical Price	16.94
	Market Facilitation Index	0.69
	Price Action Indicator	(0.47)
	Period Momentum Indicator	(0.32)

Afya Corporate Filings

	14th of November 2024 Other Reports	View Verify
6K	13th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.	View Verify
13A	12th of November 2024 An amended filing to the original Schedule 13G	View Verify
F3	31st of October 2024 An amendment to the original Schedule 13D filing	View Verify

Afya time-series forecasting models is one of many Afya's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Afya's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Afya Stock media impact

Far too much social signal, news, headlines, and media speculation about Afya that are available to investors today. That information is available publicly through Afya media outlets and privately through word of mouth or via Afya internal channels. However, regardless of the origin, that massive amount of Afya data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Afya news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Afya relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Afya's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Afya alpha.

Afya Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Afya can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Afya Historical Investor Sentiment

Investor biases related to Afya's public news can be used to forecast risks associated with an investment in Afya. The trend in average sentiment can be used to explain how an investor holding Afya can time the market purely based on public headlines and social activities around Afya. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Afya's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Afya and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Afya news discussions. The higher the estimate score, the more favorable the investor's outlook on Afya.

Afya Corporate Management

Julio Angeli	Vice Innovation	Profile
Virgilio Gibbon	Chief Officer	Profile
Luis Blanco	Chief Officer	Profile
Renata Couto	Investor Manager	Profile

Already Invested in Afya?

The danger of trading Afya is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Afya is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Afya. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Afya is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.

When determining whether Afya offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Afya's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Afya Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Afya Stock: